Salary & Dividend Calculator UK 2025/26 & 2026/27

Low salary (£12,570) + dividends. This minimizes NIC and income tax while maximizing take-home pay. Your salary covers the personal allowance (£12,570) so you pay no income tax, then take remaining profits as dividends at 8.75%.

Most directors find £12,570 + dividends optimal. However, the best amount for you depends on your company's profit, personal circumstances, and pension planning. Use this calculator to compare different scenarios and see the impact on your take-home pay.

From April 2025: Employer NI increases to 15% (from 13.8%) and the threshold drops to £5,000. From April 2026: Dividend tax rates increase - basic rate becomes 10.75% (from 8.75%), higher rate becomes 35.75% (from 33.75%). These changes reduce take-home pay for many directors.

No. Dividends can only be paid from available profits retained in your company. You need sufficient post-tax profit after corporation tax to cover them. The calculator shows your maximum available dividends.

Minimum salary for State Pension is £6,500. But £12,570 is often better - still tax-efficient while giving better pension entitlement. Dividends don't count toward State Pension.

Currently 19% on profits up to £50k, tapering to 25% for profits over £250k. Salary and employer NIC are deductible expenses from your gross profit before corp tax is calculated.

Generally, maximize your salary up to £12,570 first (tax-free), then take dividends for remaining income needed. Dividends are tax-efficient but require declared profits and proper board minutes. Salary gives State Pension benefits and is simpler to administer.

Yes - it uses official HMRC rates and includes all 2025/26 and 2026/27 tax changes. However, for personalized advice considering your specific circumstances (loan directors, pension planning, VAT, etc.), consult a chartered accountant.